Mitel, a global business communications company, completed its acquisition of telecommunications vendor ShoreTel.

In conjunction with the closing of the acquisition, Mitel completed the financing of an incremental $300 million term loan priced at LIBOR + 3.75% with a LIBOR floor of 1.00% maturing in September 2023. Proceeds of the incremental term loan, along with credit available under the existing revolving credit facility and cash on hand from the combined companies, were used to finance the acquisition of ShoreTel as well as fees and expenses related to the foregoing.

BMO Capital Markets led the new term loan facility with Citizens Bank, HSBC Bank Canada and Canadian Imperial Bank of Commerce serving as joint lead arrangers and joint bookrunners. Citizens Bank led the amendment of the existing facilities and will act as administrative agent for both the existing and new facilities.

“Digital transformation is rapidly changing business models in every industry and every corner of the globe, opening the door to disruptive opportunities for companies to grow and compete. For businesses, moving to a cloud communications and collaboration system inside their own organizations is a natural first step on their digital transformation journey,” said Rich McBee, president and CEO of Mitel. “Mitel and ShoreTel are now stronger together and even better equipped to help take our customers to the cloud, seamlessly and simply.”

Mitel and ShoreTel customers and partners can continue to count on the same cloud and on-site solutions they always have. Mitel will provide ongoing service and support for all products throughout their lifecycles.